The projections were based on an average oil price of between $US104 and $US107 a barrel for Kuwaiti crude, the NBK report said.
Kuwait had projected a huge deficit of $US26 billion ($A25.29 billion) for the current fiscal year ending on March 31, 2013, by calculating oil income at a highly conservative price of just $US65 ($A63.22) a barrel.
The emirate is pumping around 3.0 million barrels per day and plans to spend around $US100 billion ($A97.26 billion) over the next five years on huge oil projects.
In the previous 2011/2012 fiscal year, Kuwait posted a record budget surplus of $US47 billion ($A45.71 billion) on the back of an all-time high income of $US107.5 billion ($A104.56 billion). Oil revenue makes up around 95 per cent of public revenue.
Kuwait has projected a deficit in each of the past 13 fiscal years, but ended in surplus mainly by projecting oil income very conservatively.
During that period, the emirate has accumulated about $US250 billion ($A243.16 billion) in budget surpluses.
Under Kuwaiti law, 10 per cent of revenues are deducted every year in favour of the emirate’s sovereign wealth fund, the assets of which are estimated at about $US400 billion ($A389.05 billion).
This fiscal year, Kuwait decided to transfer 25 per cent of revenues into the sovereign wealth fund. Returns on the fund are not included in the budget.
With a native population of 1.2 million in addition to 2.6 million foreigners, Kuwait says it holds 10 per cent of global crude oil reserves.
